P566 ORACLE 566 Mon12 Oct C4 1751:34  2/7    YOU WRITE...  * Letters answered this week by chartered accountants Binder Hamlyn: SHARES AND TAX M Hackleton of Derby asks: "If on my death the value of my equity shares shows a Capital Gain, which exceeds the current threshold - will my estate be liable for Capital Gains Tax as well as Inheritance Tax. Reply: No. Death no longer triggers a charge to CGT. Only the difference in the value of your shares at death and when they are sold is subject to CGT. The indexation allowance should not be overlooked in this connection. another letter > Your Money ...560 Feature ...567 Feature Tourist Rates Holidays City
P566 ORACLE 566 Mon12 Oct C4 1752:17  3/7    YOU WRITE...  INVESTING £40,000 John of Spalding, Lincs say3 he has £40,000 in a building societ8. He is 40 working and single. Eventually he would like to buy his own home. What other investments could he consider? Reply: It would be prudent to leave some money in your building society account in anticipation of acquiring a mortgage at some future date. If you wish to spread your investments you should consider National Savings products. Interest from ordinary accounts over £500 is currently 6% which is tax free for the first £70 of interest, so you could invest £1,000. > Your money...560 Feature...567 Feature Tourist Rates Holidays City
P566 ORACLE 566 Mon12 Oct C4 1752:06  4/7    YOU WRITE...  INVESTING £40,000 (reply continued) You can invest in a National Savings investment account which pays 10% gross but none of it is tax-free. You also have to give a month's notice for any withdrawals. You could also consider income bonds (10.5% gro3q0 which needs a minimum investment of £2,000 and three months' notice of withdrawals. If you want to depart from 'safe' investments it is a question of how much risk you want to take investing in equities or unit trusts. You may take the popularly held view that the Stock Mar3ft is due to tumble sooner rather than later, so it is best to stay with safer investments. more > Your money...560 Feature...567 Feature Tourist Rates Holidays City
P566 ORACLE 566 Mon12 Oct C4 1731:51  5/7    YOU WRITE...  PUTTING OPTION SHARES INTO PEPS M. Biddle of Kempsey, Worcester wants to transfer his share option holding into a Personal Equity Plan.The company stockbrokers say the shares would have to be sold and then bought into the PEP from the market. Mr Biddle asks if there is not a better way? Reply: There is little to add to the brokers' comments. The rules say that induwjduals cannot subscribe to a plan other than by cash paid directly to the plan manager and transactions should be at prices expected on the open market. There seems to be no simpler or cheaper means of setting up a PEP. another letter > Your Money ...560 Feature ...567 Feature Tourist Rates Holidays City
P566 ORACLE 566 Mon12 Oct C4 1754:15  7/7    You write...  CAPITAL GAINS AND COUPLES (reply cont)  We cannot calculate your tax liability because you have not given enough information. However, the entire system of personal reliefs and allowances is currently under scrutiny following the publication last year of the Green Paper on personal taxation reform. An area of concern is the general structure of personal allowances and in particular that for married women. There was nothing in the 1987 Finance Act so we shall have to wait to see whether the Chancellor proposes any sweeping reforms in his00988 Budget. more follows > Your Money ...560 Feature ...567 Feature Tourist Rates Holidays City
P566 ORACLE 566 Mon12 Oct C4 1750:10  1/7    YOU WRITE...  Are you puzzled by the taxman, share dealing and related investments, state benefits, savings, loans, credit cards, insurance (the list is endle3q!)? Then here's your chance to pick the brains of the money boffins. Send your questions to me, Carol Oliver at Your Money, ORACLE, Craven House, 25-32 Marshall Street, London W1V 1LL. It's also your chance to have a say about how other people treat your money - and how services could be improved. Sorry - no personal correspondence. this week's letters > Your Money ...560 Feature ...567 BOURN DOUTH - SO MUCH MORE BESIDE THE SEA.........596 Feature Tourist Rates Holidays City
P566 ORACLE 566 Mon12 Oct C4 1740:50     YOU WRITE...  $,.!,,,,,,,,,,,,,,,,,,,,,,,. Ard you puzzldd by the taxman, shard dealing and related investments, state "—&—cits, savings, loans, credit cards, insurance (the list is endless!)? Then here's your chance to pick the brains of the money "fffins. Send your questions to me, Carol Oliver at Your Money, ORACLE, Craven House, 25-32 Marshall Street, London 1V 1LL. It's also your chance to have a say about how other people treat your money - and how services could be improved. Sorry no personal correspon—ence. Your Money ...560 Feature ...567 BOURN DOUTH - SO MECH MORE BESIDE THE SEA.........596 Feature Tourist Rates Holi$—x2 Citx
P566 ORACLE 566 Mon12 Oct C4 1740:01    YOU WRITE...  $+.!/*%/$,.!,,,,,,,,,,,,,,,,,,,,,,, PUTTING OPTION SHA @BINTOPEPS M. Biddld of Kempsey, Worcester wants to transfer his share option holding into a Personal Equity Plan.The company stockbrokers say the shares would ha6— to be sold and then bought hnto the PEP from the market Mr Biddle a3is if thdre is not a better w—p? Reply: There is little to add to the brokers' comments. The rules say that individuals cannot subscribe to a plan other than by cash paid directly to the plan manager and transactions should be at prices expacted on the open market. There seems to be no simpler or cheaper ldans of setting up a PEP. another letter > Your Money ...560 Feature ...567 Feature Tourist Rates Holidays Citx
P566 ORACLE 566 Mon12 Oct C4 1740:14  6/7    YOU WRITE...  CAPITAL GAINS AND COUPLES JT Crossley of Stoke-on-Trent says he has not taxable income other than from investments and his wife earns only £35 a week. What is the best way to deal with their tax liability and can they both claim the CGT allowance? Reply: As a married couple your incomes will be combined, but your wife's earnings will not suffer tax as they are beneath her personal allowance (wife's earned income relief) of £2,425 The Capital Gains Tax allowance of £6,600 is divided between you in proportion to your respective taxable amounts. more reply > Your Money ...560 Feature ...567 Feature Tourist Rates Holiday3 City